The aim of present study is to investigate the relationship between economic growth, institutional quality and fiscal policy over the period of 1984-2015, in the case of Pakistan. The unit root analysis reveals that all variables are non-stationary at level, but some are at first difference. The ARDL bounds testing approach to integration is employed to determine the long and short run relationship among the variables. Principal Component Analysis (PCA) is carried out to construct an index for institutional quality. It was found that institutional quality and government spending were positively affecting the economic growth of the country, while educational attainment and private investment were also significantly contributing to enhance the economic growth of Pakistan. It was suggested that government needs to improve the institutional quality and growth oriented spending to further boost the economic growth.